Factors to Consider
Since every business is unique and each insurance company uses different standards, it’s a good idea to consult a professional business insurance agent. Some of the variables that can help you determine if your business requires a commercial auto insurance policy include:
• Number of vehicles owned
• Who’s driving the vehicle(s)—if you need to list other employees as drivers, you need commercial insurance
• How often the vehicle(s) is (are) used for commercial purposes—talk to your agent about what is defined as “business use”
• Type and size of vehicle(s)
• Registration—if the vehicle(s) is (are) registered in the name of the business, you need commercial insurance.
For example, you own a small dry-cleaning business and own two vans that your employees use five days a week to pick up and drop off your customers’ orders. You sometimes use the van to run errands or grab lunch, but they are primarily used for business purposes. The title of both vans is in the name of your business.
So what do you think—does the dry-cleaning owner need personal or commercial auto insurance? If you guessed commercial auto insurance, you guessed right.
Safeguard Your Vehicles
Similar to personal auto insurance, a commercial auto policy will likely include a combination of bodily injury, property damage, collision and comprehensive coverage, including:
• Vehicle repair or replacement after an accident
• Damage caused by theft, vandalism or inclement weather
• Property damage expenses
• Injury or damage to others
• Medical bills.
Also, if your company’s vehicle is involved in an incident that causes damage to someone’s property or gets in an accident with another car, driver, passenger or pedestrian, commercial auto insurance would offset related costs.